STORY: Crypto activity in Iran is booming.
And U.S. investigators are reportedly examining whether specific crypto platforms have facilitated sanctions evasion by Iranian officials.
Crypto transaction volumes hit an estimated $8-10 billion last year in the Islamic Republic.
As both state-linked groups and retail investors turned to digital currencies.
That was according to estimates from TRM Labs and Chainalysis.
A Treasury spokesperson referred Reuters to a September statement announcing measures the department was taking against "shadow banking" networks supporting Iran.
Iran's mission at the UN did not respond to emailed requests for comment.
The country has been effectively severed from the dollar-based system and has seen a rapid devaluation of its currency.
Oil revenues remain its largest source of foreign currency.
A recent wave of anti-government protests and the Tehran government's deadly crackdown have prompted threats of military action from President Trump.
And Washington imposed new sanctions on Iran last month.
They included on 18 people it accused of being part of shadow-banking networks of sanctioned Iranian financial institutions.
But researchers say gaining a complete picture of Iran's crypto usage is near-impossible.
And estimates of the split between state-linked and retail volumes vary significantly.
Chainalysis estimates that 50% of Iran's volumes last year were linked to the Islamic Revolutionary Guard Corps - a powerful political, military and economic force with close ties to the supreme leader.
Still, the company estimates the Guards have moved $3 billion worth of crypto since 2023.
Crypto activity rose sharply during bouts of social and geopolitical instability last year including during the recent protests.
The analysts added that was until the government blocked the internet on January 8th, citing activity on Iranian exchanges.
By contrast, TRM Labs estimates that 95% of Iran-linked flows come from retail investors.
